tv Real Money With Ali Velshi Al Jazeera September 25, 2014 5:00am-6:01am EDT
good night, we'll have more of "america tonight," tomorrow. >> hundreds of days in detention. >> al jazeera rejects all the charges and demands immediate release. >> thousands calling for their freedom. >> it's a clear violation of their human rights. >> we have strongly urged the government to release those journalists. >> journalism is not a crime. >> everyone knows about isil, but what about the other target of america's airstrikes in syria? i'll look at a small band of fighters who could pose a big threat to the west. also the unscene cost of america's war. it's more than a price of tanks and guns. i'll explain how we'll pay here at home for decades to come . robots are coming for your job. i'll tell you what you can do to
fight them off. i'm ali velshi and this is "real money." >> this is "real money." you are the most important part of the show. tell me what is on your mind by tweeting me at ali velshi. united states and five arab allies continue their pounding from the air on targets on syria. but that did not halt the advance of isil fighters in northeast syria. the fighting has sent 140,000 people fleeing across the border into turkey since last week. many of them told of homes set on fire, prisoners beheaded by isil fighters. meanwhile, muslim extremists all the way in algeria reportedly beheaded a french hostage to show their allegiance to isil and take r revenge on france
for launches airstrikes in iraq. airstrikes was a focus at the u.n. supreme cour security council. leaders passed u.n. resolution that made terrorist travel, and there is real fear within the intelligence community that they're receiving training and then will return to their home countries to launch terrorist attacks on behalf of isil, al-qaeda and other groups. that was the justification for tuesday's attacks against an an al-qaeda cell.
khorason was nearing the execution phase of a direct attack on the united states or europe. president obama explained today the only language understood by killers like this is the language of force. we take a look at what we know about khorason. >> americans find out that isil was not the only target there. and little known group identified by u.s. officials as the khorasan group is also targeted by the u.s. near aleppo. it's a group described as being linked to al-qaeda veterans in afghanistan and pakistan. it's leader is on the most wanted list and has such close ties to al-qaeda that he had advance notice of the 9/11 attacks. some terrorism analysts say this
group is focused on recruiting westerners to attack the west. reports of its size range between 50 and 1 hup. the pentagon said it was targeted because it was plotting an imminent attack between the u.s. and u.s. interests. it did not publicly mention the group until tuesday. but u.s. genera attorney general eric holder said that the u.s. has been monitoring them for two years. enhanced security measures was based on concerns that we had about what the khor ason group was planning to do. >> those measures came in july when the security administration banned uncharged phones and lab tops from some overseas flights entering the u.s. the associated press has reported that bun of the concerns cited by intelligence officials is that the khorason group has been working with al-qaeda's
yemen affiliate testing exploding devices at airports. >> citing u.s. intelligence the president warned other war leaders i leaders of fighters pouring into syria. mike viqueira, they're upping the ante and ratcheting up the conversation. it's interesting that these guys have known about khorasan for a while, but they're hard selling the world and american people on the need to attack. >> i watched the president every day, i have for years. i saw his speech back in may at west point. it was billed as a foreign policy speech and it was vintage president obama. he was intellectual. he stressed the need for diplomacy and military as a last resort. contrast that speech with what
he did tray. almost bellicose in comparison. language like the only language that groups like isil understand is--these killers understand is the language of force. he went on to chide some of the arab nations that are part of his kne new arab coalition, as turning the other way when people of their nations send funds to support isil and isis and other groups in the region. remarkable session. reports went to the security council for only the second time. did he it the first time in 2009 when head of state chair a security meeting and passed through that resolution against foreign fighters. really a remarkable day of tough talk and diplomacy. >> doesn't sound like the tough talk you've heard before. very different. this is a president who came in and said those things are over. he said we're shifting our emphasis. during elections he said the
same thing. yesterday you were talking with me. and after you talked with me i talked with john nogle. he had trained iraqi fighters, and we talked about what happened. i asked how long he thought this will go on for, this new effort in iraq. let's listen to what he told me. >> i predict we will be in iraq for the next 50 years. i'll be dead and gone and there will still be americans in iraq. if we do this right and leave american advisers there, the iraqi forces will be doing most of the fighting, most of the patrolling, and americans will be providing the steel backbone that will coop them on point. what happens in iraq matters to future security of the american people. >> this is entirely different than what president obama said when he came in and wanted to happen. this is now a president who is the very person who unseated the last time. >> the president and the white house acknowledge this is going
to be going on well after president obama leaves office in in 2017. something else happened that pointed out what we're talking today. he comes in and meets with world leaders. they have photo-ops of various formality. he had one with haideraled haider al abadi. they encouraged nouri al-maliki to go. they felt he was decisive. they come in and the cameras start rolling he said we need more american military equipment, why? because isil took the ones we had. the iraqi military is not trustworthy. the reason that was there is because there was someone to fill the space. the iraqi army, but even they aren't trustworthy much less the
free syrian army, the vetted army that the united states and allies are going to try to train them and send them in as proxies. >> this is feeling like a quagmire. mike viqueira, joining us now. the white house has released an estimate of the full cost of this new war against isil. but the pentagon said it has shelled out $560 million between june and the end of august, and it estimates daily costs averaging at least $7.5 million. pushing the price tag so far to some $740 million. the cost of war project is a study group consisting of study group in rhode island. it issued it's first report in 2011. it updated it this june. anita crawford is the codirector of the cost of war report.
she is a professor of political science at boston university, she are rejects that another war will hurt america's economic recovery. dr. crawford. thank you for being with us. we were not at at time we were talking about sequesters and budget cuts we were not banking on another real war. the president had been talking about scaling back a different type of war, different type of emphasis. but now we're back at war and these estimates at the white house never really reflects what it costs america. >> that's right. the united states has always in every war been optimistic about how much it will cost, and usually wars go on longer than you project, and they cost more than you think they're going to cost. we were told in the past that these wars would cost $100 billion, something like that. they've actually cost ten times that. and more. so $7.5 million a day is the
pre- estimate, so to speak. it will be much more than that. >> you heard when i was talking to mike viqueira a minute ago, we played a clip from last night when former lt. col. nagle said it's going to be another 50 years. every time we try to pull out from a place like iraq we get pulled in. this is an ongoing effort. when you take these costs, let alone the military costs, this is a lot of money. >> right, and in interest costs alone this will be 7 trillion-dollar over the next 50 years if it, indeed, goes on. that's just to pay the interest on what we borrowed to pay for the wars to date. so the united states needs to have a conversation about how to pay for this because it is essentially eat up anything that the united states wants to do. the burden is huge. and if it's a 50-year war, frankly it's a failed policy.
this is already a failed policy if 13 years after we begin to go after terrorists for fighting the same al-qaeda group that was involved in the 9/11 attacks. you need to rethink the strategy, it's expensive and ineffective and may well be counterproductive. >> there are three pots you have to think about when you think about the money on war. the budget for pentagon, expenditures, the ones that are obvious. and then the ones that you study, the ancillary costs to that war. then the third bucket, which is the bridge that doesn't get fixed. the highway trust fund that doesn't get renewed. the priorities that we ignore and we cut. and the people who are most hurt by those cut priorities tend to be the least among us in society. in a way this war effort enhances inequality in our society. >> that's right. what happens is when you spend money on the military, of course
it creates jobs. for every billion dollars you spend you get 11,000 jobs for the military. but if you spent that same billion dollars on healthcare or education or clean energy or construction, you would get many more jobs than that. for instance, education spending would give you 26,000 jobs per billion compared to military spending, which gives you 11,000 jobs. it's an opportunity cost in terms of employment, but there is also the cost in terms of if beam tonight have jobs they're not spending money and it send hour economy is dependent on spending by the average consumer it has a ripple affect which decreases tax revenue which we have to kick the can down the road to pay for the wars. it's a spiral. >> has the group that has come together for the cost of war projects.
you're stopping short of making military recommendations, but you did say it was a flawed strategy. >> i'm a professor of political science, and i can speak as well not just about the cost, but look, the president said the only thing the isis--the isil people understand is force. they also understand money. part of the president's strategy is to cut off their financing. that will have an important affect, but there are many ways to cut off financing. bombing may be ineffective, it's an indirect strategy. another option is to work harder to end the war in syria. now the fact that the war in syria has gone on so long is, it's a complicated, bloody mess, but that--you need to put more effort on to that. further, the united states should have worked harder and there is still time to work
harder to democratize iraq. they have spoke about what a mess the iraqi military is, and how untrustworthy it is, but this was a problem that was not going to be solved in 2011. an eye for eye will not help us, but make us all blind, as gandhi said. >> dr. neta crawford, thank you. a company that might manage some of your retirement money is under investigation. i'll tell you what you need to know coming up. keep it right here. >> oscar winner alex gibney's edge of eighteen. an intimate look... >> ...wait...is that a camera? >> at the real issues facing american teens >> whoa...code red.... >> dreaming big... >> i gotta make it happen... and i'm gonna make it happen... >> choices made.... >> i'm gonna lose anything
>> weekday mornings on al jazeera america >> we do have breaking news this morning... >> start your day with in depth coverage from around the world. first hand reporting from across the country and real news keeping you up to date. the big stories of the day, from around the world... >> these people need help, this is were the worst of the attack took place... >> and throughout the morning, get a global perspective on the news... >> the life of doha... >> this is the international news hour... >> an informed look on the night's events, a smarter start to your day. mornings on al jazeera america >> a huge investment firm that probably manages some of your retirement money is under investigation.
i'm talking about pacific investment management company. you may know it at pimco. the sec is reportedly looking into whether pimco artificially inflated the returns of a popular fund aimed at investors. we don't know what it means for those investors but it has the potential to shake the trust that you have in a firm that manages 2 trillion-dollar. the fund i'm talking about is the pimco total return exchange traded fund. exchange traded funds etf, they've become extremely popular with hedge funds and institutional investors, but this has been marketed to appeal to mom and pop investors. the etf has gained 9.5% since it was launched in march of 2012
until the end of this august. here is the potential problem. the wall street journal state the sec wants to know if pimco bought bonds at discounted prices but valued them at higher prices provided by outside companies. that might have made the etf's performance look better than it was, and that could mean investors got inaccurate information, that would an violation of securities laws. if you can't trust the numbers a fund company is giving you on returns, why would you ever want to give that company your money. pimco did not respond to our calls or e-mail, but a spokesman said that we believe our pricing procedures are entirely represent and in keeping with industry best practices. he also said that pimco has been cooperating with the security exchange
securities. this is a big one. $222billion in assets. the biggest bond fund in the world. it's in many 401k plans. that fund fell 1.9%. on one last thing the performance of that monster mutual fund has lagged the pimco etf that is being investigated. you should not necessarily pull out of pimco or scale back on bonds. that's according to doug flynn. he joins me now from his offices in garden city, new york. doug, two things going on. pimco, lots of people are invested in pimco. a lot of people don't have a lot of choices by virtue of what their companies offer. should you be worried if you're
invested in pimco right now? >> well, it's kind of too early to tell to be honest with you. whether they should worry about it. that fund is managed directly by growth. so what you're paying for first is a total bond market index fund is hopefully some of the advantage that he might have. additionally he has been able to bring additional return over the index. but that fund has been in outflows every month for a long time. >> meaning that people have been taking their money out of the fund. >> that's right. think of yourself as portfolio manager. you sign on to your terminal that day and you decide to buy some bonds that day. wait a second, i have to sell. you're selling with you would normally like to be purchasing things. that's where some of the discrepancy is. in the etf, which is new beer and smaller, they had an
opportunity to buy some bonds that he might have had to sal sell on the actual mutual funds. >> i'm going to show my viewers. i've got a chart here. the total return fund is the orange line. that's the big fund, the $220 million fund that people have been taking their money out. the green is the etf. the bond fund. they mimic each other, but the return in that green is positive. it's above zero, and there is space between it and the other return. what is the most local explanation ?-- logical explanation. >> the fund that is new and inflows every day that the manager signs on to the computer they get that extra cash to buy investment. he was buying securities that he thought were under valued, and then there were some possible revea r revaluation from a third
party company. he could not be buying a lot if he had to be selling to pay piece theme out who were redeeming. that has nothing to do with it. whether there were price discrepancies, that goes to the heart of this investigation, and we'll find out. that's part of the problem. you don't know that yet. generally you try to stay away from funds that are in a constant outflow scenario because they have a harder time keeping pace with the other managers and other funds that are not in that scenario. >> because if they've got to sell stuff they got to sell stuff to pay investors out, that's missing an opportunity to buy an invest in stuff. >> that's right, and typically at the worst time. >> let me ask you this. interest rates are moving up. how should you be thinking about bonds in your portfolio right now? >> if you look in your 401k and 2013 is a great year to see the return of the bond funds that you had in your 401k. the bond market index was negative 2%.
the pimco fund was just about right there. but if all the other bond funds that you have were negative in 2013 that's thie the interest rates went up. this year it has returned, but that's a sign, a snippet that you can expect when bond raids go up. it's time to get on the phone and call your provider and ask for a bond fund. we don't want people to be afraid that they can't invest in bonds. the stock market is getting higher, higher, some people need some fixed bonds. if your bonds were negative last year you don't have the right kind of bond funds. there are bonds and bonds fund that do well when rates go up. i'm not afraid of bonds over all i'm afraid of regular indexing and oregon bonds funds that have the same opportunities that others do.
>> doug flynn joining us from garden city, long island. you might be surprised of what it is and who is getting in on it. that's coming up. >> every saturday, al jazeera america brings you controversial... >> both parties are owned by the corporations. >> ..entertaining >> it's fun to play with ideas. >> ...thought provoking >> get your damn education. >> ...surprising >> oh, absolutely! >> ...exclusive one-on-one interviews with the most interesting people of our time. >> you're listening because you want to see what's going to happen. >> i want to know what works what do you know works? >> conversations you won't find anywhere else. >> talk to al jazeera. >> only on al jazeera america. >> oh my!
>> start with one issue ad guests on all sides of the debate. and a host willing to ask the tough questions and you'll get... the inside story ray suarez hosts inside story weekdays at 5pm et / 2pm pt only on al jazeera america >> follow the money. that's good advice for business and entrepreneurs, anyone who wants to under how the world works. i want to talk about something that most americans know nothing about. islamic finance. it's growing fast. demand for islamic finance is growing. that's attracting big players. they see big bucks toe made from investors who want to put their money into vehicles that follow islamic financing principles. goldman just raised $500 million on an islamic bond issue that just closed.
>> banks are embracing financial products that can flied with islamic principles. >> there is a trend after the recent economic crisis. islamic banking tends to be less risky than conventional banking. >> reporter: unlike convention finance islamic banking prohibit excessive risk taking, paying interest or investing in industries forbidden by islam, like alcohol, tobacco and gambling. >> if a bank is in partnership with its customer, then it's thought that the customer will take the risk and the bank will take fewer risks. it keeps both bank and customer in check.
>> and islamic bond does not pay interest to investors. instead, investors collect a fee for renting back the bond back to the seller. nearly 80% of the $1.7 trillion in islamic banking assets are concentrated in the so-called kismet countries. but it is catching on around the world. this year britain, , one of wall streets biggest players dre through its hat in the ring. >> investors snapped up an issue of goldman's debut of islamic bond this september. a journey that got off to a bumpy start. >> three years today they issued that didn't go so well, part of the reason is the number of scholars looked at the instrument and said it was not at sharia compliance.
>> but agreeing on what is and is not compliant is a matter of difference. >> i could go to one scholar and get a different answer and go to forescholar and get a different answer an and. >> this type of banking industry expected to grow in the next five years is expected to have growing pains. >> according to going to a manager who manages $23 million in assets. three-quarters in islamic funds and products. he also says growing number of
clients aren't muslim but are attracted to the way some of these products are structured and the potential return. he joins us now for orlando, one of the big criticisms of islamic banking i is that it does profit from interest but masks it under the word fees. >> most sharia compliant investments are focused on being socially responsible investments and staying away from interest-based finances. when you're talking about pimco and interest-based bonds the focus in sharia compliant investing is to stay away from the highly leveraged vehicles, and gives us a way to stay away from these highly leveraged instruments that can help when things are going up, but then we saw what happened in 2008 when markets took a tumble, their drop was pretty substantial. sharia compliant investing stayed out of a lot of that
because we simply did not participate in the down side of financial services sector. >> generally speaking socially conscience investing does not mean throwing your money at major indexes. >> i don't know if that's true. in the last ten years on average you'll find that sharia investing does as well if not a little bit higher. it's true there isn't a direct correlation. when the market crashed, sharia investment did better because we didn't have that exposure. now wells fargo and bank of america have done quite well in the last few years. so in these last few years the conventional markets will do better. >> what is--is there a real motivation, then, you're right, they can do better, they can do worst.
if you're not muslim one could care less about the principles. is there some compelling reason to be involved with the islamic compliant funds and investments? j absolutely. 75% of sharia compliant investments today in the united states are owned by non-muslims. why are they invested in sharia compliant investing ? the reason is they've seen what happens in the markets when we have these highly inflated securities and mortgage-backed securities. sharia compliant investing gives us an alternative that is not only social responsible but also avoids debt. debt is the heart of the issue here. because we have seen what happens when we have too much debt whether it's an individual or a company or a mortgage-backed security, excessive debt is dangerous. >> so would an sharia compliant
bank not issue a mortgage? >> sharia compliant bank does issue mortgages. but they're actually not mortgages. they're co-ownership. when you take out an odometer, you're borrowing money to buy a house or car, whatever it is. when go to a sharia compliant bank you're not getting a mortgage, you're getting a partner. so we go in and buy a house together. you put down 20% and i put down 80%. i'm going to rent you a portion of the house that i own. that's how it works. >> is that a real difference or just figuring out a different way to say it. when i have a mortgage, i guess the banks are kind of the co-owner with me. and when i don't pay my bills the bank owns the house. >> this is where it's interesting. you're not paying interesting on interest with sharia compliant
mortgages, and it's a non-recourse mortgage. that's a pretty big difference. when you take all of these mortgages together, and you mentioned earlier about the funds in the previous piece, this is another exciting area to invest in because now you're talking about a mortgage-backed security that is not really focused or based on interest. it's based on equity more so. and when you put all these together into a product, this is why goldman sachs is so interested in this, and this is qua there is explosive growth in the united states. >> interesting topic. i'm glad you joined us. joining us from orlando. coming up next. mars for a bargain. i'm going to explore how india managed to reach the red planet's orbit at a fraction of the cost that most countries pay, including the united states. >> it's a weekday morning in new york city and a line forms well before doors open at this east harlem food pantry. the people waiting for food range from young mothers to
older people on fixed incomes. inside the pantry, the number of people needing food is only growing. congress cut 5 billion dollars from "s.n.a.p." or the "supplemental nutrition assistance program" in late 2013; because of that, the new york common pantry, one of the largest in new york - serving 3 million meals annually, reports a 26% increase in recipients in the last year. new york ranked 4 in a recent survey of cities around the globe with the highest percentage of millionaires. joel berg, who heads the new york coalition against hunger says, as the city gets wealthier, demand at the 1000 plus food kitchens he represents is only increasing. >> well when neighborhoods gentrify, the demand goes up because rent is the single greatest cost that low income people face and if they can't afford to pay rent, they can't afford to buy food. >> and with less government aid for food, the strain is on charities to fill the void and depend on donations to keep feeding new york's hungry.
>> india is celebrating a major achievement. it put a spacecraft into orbit around mars, being the first asian country to do that, and it did it on its first try. more than half of the world's missions to mars has failed, and more impressive is how little it cost, $74 million. it cost the u.s. nearly ten times that to get it's maven spacecraft up there.
how did india do it? let's ask our science and technology correspondent jake ward. i hear its cheaper to hire engineers in india, but i didn't though it would be cheap for send spacecraft to mars. >> the cradle of civilization in so many ways has burst through this barrier that much wealthier nations could not do. most of the flights to mars have failed. that's over 40 missions. over 20 of them have blown up on the way. just the cheer distance of getting to mars. the fact that they built something that could restart itself after 300 days of darkness, just unbelievable. the achievement, $74 million is such an incredible bargain. >> and it's an interesting time for india with the eyes on the world with its new prime minister narendra modi, who is here. he has this rock star arrival.
he'll be doing this thing at madison square garden that has been sold out. india does not face the same criticism that china does on engineering that it takes other people's stuff. they can execute functions but it doesn't have the same engineering entrepreneurship that india's society does. it is pretty impressive. >> anybody who takes india's side would be right to point out that india in creating this particular spacecraft created it's own navigation software and proprietary stuff that it never tried before. not only with its first try but the first spacecraft built. they never made one before this. you always do that in a space program. they modeled the whole thing in software and on its first try sent it into mars. all believable to do that all in one go. the sophistication of the
engineering culture, there is a homegrown set of engineers who could pull off things that even the biggest countries could not. >> even in the united states the last election the republicans were arguing whether nasa should be funded because we have other priorities in an economy that is still recovering. india has bigger problems than the u.s. has. what is their motivation spending even $74 million to send a spaceship into mars. >> they spend $74 million, yet they are a country that, shouldn't that money be put towards intense poverty that afflicts that nation? they spent $20 billion a year subsidizing their food programs, so the scale of problems that they see in that country seems to me could not truly be changed by that $74 million. it would change somebody's life, no question, but the idea that they carved out a bit of what could otherwise be a sub citizen stance policy, and make it about am mission.
make it about getting out there. there is as you mentioned many times in the show getting out above the earth. it has tremendous financial advantage. >> it inspires kids like us. >> one step that blows my mind. the f 22 fighters that we use to bomb syria, they cost $150 million a pop. this is a $74 million thing to mars. >> jake, love having you here. >> thanks. >> how children in poor countries can teach themselves to read, write and do math. one of the tech world's most innovator thinkers says it can be done, and he'll tell us how on tech know, >> i landed head first at 120 mph >> a shocking new way to treat brain injuries >> transcranial direct stimulation... don't try this at home... >> but some people are... >> it's not too much that we'ed
>> it is the last day of the clinton global initiative and new york city is packed to the gills with thought leaders and innovators whose mission is to have solutions to the world's most pressing challenges. one of those thought leaders are with us now. he's just announced his own innovative solution to oppressing global problem. a five-year challenge to people and companies to develop open source scalable software that will let children in developing countries teach themselves basic reading, writing and math. peter, good to see. >> you always a pleasure. >> i know you've explain this 8 million times, but for those who don't know your solution is not the end solution. you have not developed the software, you're put out a challenge to compete and come up
with this challenge. >> it could be a group of teens or a group from nairobi who can build a piece of software that is compelling, powerful enough to take a child where there are no schools and take them from illiteracy to reading, writing and basic math in 18 months. that's the mission. if we can do that, that's the only way we can scale. there are a billion illiterate people o on the planet, and many are kids. >> it's been something that is easily measurable, a rocket ship going no space. taking oil out of water. this one is hard. technology, solving a problem that most people don't associate necessarily with technology. they associate it with poverty. but not necessarily technology. >> so we've put this call out. we announced it on monday here atment assembly . the global summit, and we're
asking teams go to x pric pr ize.org , and you can register to compete. we expect hundreds if not thousands of teams to enter in competition. we'll narrow it down to the top five teams. the top five teams, their software will be put on tablets and will go out to 5,000 kids in sub-saharan africa, and watch those kids. do they turn on the tablets? do they go from nothing to reading, writing and basic math. that part is measurable. they either did or did not learn it. if they do, this could be pre-loaded in every tablet and smart phone that goes forward. >> normally the xprizes that work are once the solution has been had, it's so obviously marketable that everyone wants in on it. you described the first mission.
driven xprize, if you can get this to work you can make money off it, but different. >> yes, when they won the first original space flight prize, they licensed it. here the winning team's software will be open source. that will take a child with nothing to reading, writing and basic math in 18 months and make it available to the world in free. my goal is that this will be pre-loaded on every tablet, every smart phone that goes out there. >> it's not 14 years. you awarded your first xprize ten years ago. but you started 20 years ago. you put out the call to make a rocket ship, and explain to people out there why that concept that you had about insevent incentivized prices can till work. >> there are so many people out there who have access to extraordinary technology.
you know, we're driven as humans to compete. sports, business, whatever it might be. my dole is to say, listen, that's the target. the first person who is able to build software to do this wins. i don't care where you went to school, what you've done before, you win. it catalyzes interesting teams to go out. we're giving people a target to shoot at, to win. >> let me ask you about automation, artificial intelligence. we're talking about robots on today's show. there is an xprize out there to have an artificial intelligence to being. i still struggle with the problem with our time, that is job creation. all of this artificial intelligence and robotics does again continue to challenge this eroding middle class that we have in this country. how do you think about that? >> i do think about this through
my work at xprize wondering about robotics. that studies that came out of the school at office ford said that 40% of today's jobs could be eroaded b eroded by robotics. but some say no, that's not the case. it would create many more jobs. there was a famous letter written by ceos delivered to lyndon oncon son who said automation is going to destroy jobs in america. of course they were wrong. in fact, there have been far more jobs. it used to be that we would rooms filled with women copying ledger to ledger to ledger, that was the computer of 50's and 60's. when the computer came out, many thought that would decimate jobs in the banking system, but there are more jobs than ever before. will we be allowed to partner and up the level. one of the scorey statistics in
the u.s. 80% of people hate their jobs. they work to get a living. so can we get rid of those jobs and allow those individuals to partner to get better jobs that they love and enjoy? >> peter, you're a great thinker. i know you to get back to cgi because you have to be there in the closing session. you're talking to president bill clinton. >> yes, in the closing session with president clinton talking about moon shots, what is possible. the x prize of going to the moon and my fundamental belief that entrepreneurs today can take on the boldest challenges, they can take on only what governments and large corporations have ever done before. >> that's incredible. thank you. chairman and ceo of x prize. i don't need to agree on everything or:,but tell me if we agree on this. you would be upset if i was replaced by a robot, right? i see you nodding. but robots are here to take some american jobs.
i'll tell you how you can adapt and thrive no matter what comes next. i'm coming back in two minutes. >> we pray for the children in the womb >> a divisive issue >> god is life , so it's his to take >> see a 10 year old girl who's pregnant, and you tell me that's what god wants... >> a controversial law >> where were you when the babies lives were being saved? >> are women in texas paying the price? >> who's benefiting from restricting access to safe abortions? >> fault lines... al jazeera america's hard hitting... ground breaking... truth seeking... breakthrough investigative documentary series access restricted only on al jazeera america
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>> we cannot be completely sure what will happen as waves of automation wash over america's workforce. but the potential for job loss is staggering. a 2013 study by oxford university said that over the next 20 to 30 years 47% of u.s. workers are at high risk of being displaced by technology. doing the math that means there is a pretty good chance that machines might kill two-thirds of american jobs . you can get ready for this technology tsunami. learn or die using science to build a leading-edge learning organization. he joins me now. good to talk to you. you just heard my conversation with peter. >> yes. >> we're all about artificial intelligence. we're all about robots and drones. we talk about ato autonomous cars and we always get quiet at the end of the conversation
about the part that will hurt us. >> yes, we get quiet because a lot of people believe because we created jobs in the past, the agriculture revolution when it was replaced by the industrial revolution. we created jobs. it happened in the past, we'll figure it out. but maybe, maybe not. in the down side i've been advocating we need a plan b. what is the down side if we don't create those good jobs? what we do know is that this technology revolution tsunami i call it, is very different from anything we've experienced. it's more than robotic and robots and smart robots moving into the service industry, restaurant, retail, cleaning,
consulting profession, our professions. so this is not going to stop. >> the whole concept of online education, which is fantastic we talk about people getting to it, means we need fewer of you. >> yes. ultimately yes. all right, or you need those that are being replaced actually working with people in workshops and doing different things. but it's going to affect all of us. the down side is so huge 37 we need the national commission that says united states 2035, what will we look like at a country. at stake is the american dream. >> before you had drones dropping deliveries at your house, we are seeing a broken economy. the world bank said in its latest competitive report inequality is growing faster in america than in other places. we don't hand it will even
without all of this. >> yes, correct. this has a chance of exacerbating it. now what people do? first you have to believe what could happen, and say i need to do something. >> which is something that we're not great at doing. >> i need to bring my skills up, whatever job i have, i need to figure out what can technology most likely not be able to do? critically think, innovative thinking, my emotional jobs. social workers, nurse practitioners, teachers, high engagement with humans. from a skilled laborer what will technology be able to do. if i'm in a job that basically i'm doing the same thing every day, i need to get into a job where there is variety, where i've got ing to basically analyze, react, and full, be
agile mentally and dexterity. >> stuff that is hard to be a computer. >> and this has t to effect our education system. i'm concerned about my grandchildren getting jobs. the school system needs to be teaching kids how to basically think critically, innovative thinking. how to do experiments, make things and all of these things which people basically have skills, which small machines won't have in the near future. people have to be realistic, is it coming tomorrow? no, but it's coming and we can't stop it. >> this is a big conversation. i would like to have more of it with you. profession at the school of business at the university of virginia, author of "learn or die." i would like to think that i'm irreplacement, and i think you
agree, i tell myself that you agree. we're all essentially in the same boat when it comes to our jobs. adopt or be replaced. when fast food workers protest for higher minimum wage critics contend that robots will replace the guy making burgers if the cost to hire gets too high. it is not an academic theory. it is a cry from some of the companies in silicon valleys. they claim that workers in this country lack the qualifications to fill the fast-growing technology jobs that are available right now. well, it would be nice if manufacturers and employers made sure that their workers from trained for the technology-based jobs that replaced them, but that's simply not the reality. the reality is this. if you want to thrive in this economy, adapt on your own. keep adding skills as ed hess says, or expect to be replaced. as for me, i'm safe--aren't i?